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Please show steps and not use Excel 14. Company A and Company B are both trading for the same price and have the same cost
Please show steps and not use Excel
14. Company A and Company B are both trading for the same price and have the same cost of equity. You expect Company A to pay a dividend of $1.50 in one year and to maintain the same dividend forever. Assuming that you expect to pay the same price today for a share of stock in both companies, what is the cost of equity for Company A? (express as a \%)Step by Step Solution
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